On January 1,2014,Portwell Company Purchased a Patent for $200,000 B)

question 25

Multiple Choice

On January 1,2014,Portwell Company purchased a patent for $200,000.They estimate a useful life of 4 years.What entry is needed at the end of the first year?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Amortization expense-patents } & 50,000 & \\
• \hline \text { Patents } & & 50,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Amortization expense-patents } & 50,000 & \\
• \hline \text { Accumulated amortization } & & 50,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Patents } & 50,000 & \\
• \hline \text { Amortization expense-patents } & & 50,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Loss on patents } & 50,000 & \\
• \hline \text { Patents } & & 50,000 \\
• \hline
• \end{array}\]

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Definitions:

Distributive Negotiation

A negotiation approach where parties view resources as fixed and finite, leading to a competitive process to divide resources.

Negotiation Style

The manner or approach adopted by an individual or party in negotiating, which can vary from cooperative to competitive.

Interpersonal Trust

The confidence or belief in the reliability, integrity, and abilities of others on a personal level.

Pre-negotiation Planning

The process of preparing strategies, goals, and objectives before entering into negotiation talks.